ioe = new partners & business models @ its world congress 2014
DESCRIPTION
The Internet of Everything will expand markets and will spawn businesses valued at US $ 14 Trillion. Key areas of innovation will be the automotive and intelligent transportation systems industries. Studies show that each connected vehicle can create $1,400 in benefits each year. Key stakeholders like automotive manufacturers and suppliers, mobile, telematics and infotainment service providers, and insurance companies and governments recognize the benefits of connecting vehicles, and are designing new business and technology architectures to get a piece of the big connected vehicle pie. This presentation shows potential win-win business and technology architectures that could help accelerate the broad deployment of vehicle connectivity through cross-industry partnerships.TRANSCRIPT
September 2014
ITS World Congress 2014: New Partners, Innovation & Business Models Andreas Mai, Director Smart Connected Vehicles
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Andreas Mai Director Smart Connected Vehicles
Dr. Chris Borroni-Bird VP Strategic Development
Tim Yerdon VP Design, Marketing and Connected Services
James Buczkowski Henry Ford Technical Fellow & Director Electrical & Electronics Systems Research & Advanced Engineering
Kevin Link General Manager Telematics China
© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
Data People Processes
Things
UBI
Source: Cisco Smart Connected Vehicle, 2014
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Devices
Processes
Clouds Infrastructure
Applications
Collaboration
Social
Data
API
API
API
API
API API
API
API
Security
Integration
Cloud
On-Premise Intra-Company
Inter-Company
Source: Cisco Smart Connected Vehicle, 2014
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2020
Auto !?" Tech
Autonomous
Travel
Experience Assurance
Personal Public Hybrid
Mobility Value Chain
X-Change
Source: Cisco Smart Connected Vehicle, 2014
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250
210
160
80
Worldwide Benefits
$700 Billion
Note: Core Regions NA, EU, AP, Excl. 22% RoW, @ $1,400/ vehicle & 67% penetration of vehicle population
Society § Safety: V2V to address 80% of crashes § Congestion: V2I to increase road and
intersection throughput, CO2 reduction § Lower traffic/road/toll operation costs
Vehicle User § Lower operation & insurance cost § Less time stuck in traffic, more productivity § Lower data cost
Internet of Cars Service Providers § Cyber security: Cloud supported protection § B2B2C service platform: to integrate E-2-E
experiences, e.g., navi + traffic + parking +LBS § Infotainment & Productivity Apps
Auto OEM/OES § Remote diagnostics: to reduce warranty cost
(>50% electronics) § Secure OTA-Update: of >100 electronic control
units to reduce recall cost § Connected CRM/ VRM: to increase customer
stickiness and service revenue Source: Cisco IBSG Automotive and Economics Practices, 2011
Worldwide Benefits from Connecting Road Vehicles Per Year [$ Billion]
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B2C
B2B
Cost Reduction Cost Avoidance Gross Margin
Source: Cisco Smart Connected Vehicle, 2014
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Autos Tier-1s
Startups
Dealers
Insurance Government
MSPs
Source: Cisco Smart Connected Vehicle, 2014
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X-Change
Data 4 Value: What data? With whom? What price?
Customer Business Business Business
Customer
Source: Cisco Smart Connected Vehicle, 2014
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IoC Services
RSU NewCo
OBU NewCo
Network
PAYD EV Clearing And more… ITS TSP
Build & Operate WiFi + DSRC Network to Monetize Off-Load,
ITS & LBS Services
Subsidize OBU Upgrade For Right to Monetize Data & CV Services
Source: Cisco Smart Connected Vehicles Team, 2012
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RSU NewCo
Build/ Operate WiFi/ DSRC
Network (& OTT)
Mobile SP Off-Load ITS: Toll, Traffic, Park, ++
$ for ITS-Services $ for Off-Load
3G/LTE WiFi
DSRC
NewCo (PPP?)
Build/ Operate WiFi + DSRC
Network
City Mesh/ Enterprise WLAN
Hotspot
Gov
ernm
ent/
Sta
tes/
Citi
es
Roa
d/ P
arki
ng
Infra
stru
ctur
e
Source: Cisco Smart Connected Vehicles Team, 2012
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U.S. Roadside Equipment (RSE) PPP Revenue Model [US$ Million]
CapEx P&L Initial Total 5 Year RSE Investment (10 Depr.) 6,261 626
Repair/ Replacement 616 62
Operating Expenses 440
Subtotal RSE Cost 1,128
Hypothetical Margin 100% 1,128
Revenue Required to Fund “RSE Business” 2,256
Source: Vehicle-Infrastructure Integration (VII) Initiative, Benefit-Cost Analysis, Version 2.3, US-DOT, 2008 Cisco IBSG Automotive, 2011
1/10th
Per Mile Per Month
=
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City/ State/ Federal
Assets
ROA
ROA
Investment
ROI
Smart Road Fee
Big Data
Service Fee
Users ROA
(Partial) Cash-out
Infrastructure REITS
Outsource Infrastructure Operators
Funding
Smart Road Fee
Big Data
Service Fee
ITS Operators
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OBU NewCo
$
$$
Auto OEM Basic
Full Service Platform
OBU NewCo
OBU
$ for OBU
Aut
omot
ive
OE
M
Afte
rmar
ket
$ B2B Fees
B2B Services
B2B
$$$
OBU
$$$ for OBU Suppliers
$ B2B Fees
B2B Services
B2C
$$
Source: Cisco Smart Connected Vehicles Team, 2012
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Source: Cisco Smart Connected Vehicle, 2014
Core From Building Cars to Selling Travel Time Well Spent
Context Connectivity Roads ITS Services
…
Energy Vehicle LBS UBI Modes
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Source: Cisco Smart Connected Vehicle, 2014
Highly accurate maps & location
Cyber security
Big data management, analytics
Compute performance
Vehicle connectivity performance
Vehicle network performance
Actuators/ HMI experience
Algorithms for detection & decision
Sensors and sensor fusion
Autonomous Collaboration / Standards
Competition/ Proprietary
Collaborate Partner Buy (M&A) Build
HMI
Location
Innovation Leaders
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Source: Cisco Smart Connected Vehicle, 2014
Highly accurate maps and location Cyber security Big data management, analytics Compute performance Vehicle connectivity performance Vehicle network performance Actuators/ HMI Algorithms for detection & decision Sensors and sensor fusion
Technology Autonomous
Core From Building Cars to Selling Travel Time Well Spent
Value Chain Connectivity Roads ITS Services
…
Energy Vehicle LBS UBI Modes
Innovation Models Business Models
§ Build § Buy (M&A) § Partner § Collaborate § …
§ B2B & B2C § Data 4 Value § Cost Reduction § Cost Avoidance § …
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Andreas Mai Director Smart Connected Vehicles
Dr. Chris Borroni-Bird VP Strategic Development
Tim Yerdon VP Design, Marketing and Connected Services
James Buczkowski Henry Ford Technical Fellow & Director Electrical & Electronics Systems Research & Advanced Engineering
Kevin Link General Manager Telematics China
Thank you.